SEC Issues Proposed Rule for Crowdfunding

On October 23, the Securities and Exchange Commission (SEC) issued a proposed rule to implement Title III of the JOBS Act, which established the foundation for a regulatory structure for startups and small businesses to raise capital through securities offerings using the Internet through crowdfunding. The proposed rule would prescribe requirements governing the offer and sale of securities through crowdfunding. Additionally, the proposed rule would also provide a framework for the regulation of funding portals and brokers that issuers engaged in crowdfunding are required to use.